ICYMI: FG to stop Paris Club debt deductions from states’ allocations

The Nigeria Governors’ Forum (NGF) says the federal government has granted its request to stop further deductions from states’ accounts to meet their Paris Club debt obligation.

This was contained in a communiqué issued at the end of the 7th emergency meeting of the forum, which was held in Abuja on Tuesday.

According to the communiqué, signed by Aminu Tambuwal, outgoing NGF chairman and governor of Sokoto state, the federal government also resolved to pay back the monies deducted from the states.

“Members were briefed by the chairman of the forum that the minister of finance has granted the request of the forum to immediately stop further deductions from the accounts of states to meet local government councils London Paris Club obligations and the monies so far deducted be paid back to the states,” the communiqué reads.

“On the leadership of the forum, the governor of Kwara state, AbdulRahman AbdulRazaq, emerged as the new chairman of the Nigeria Governors’ Forum through a consensus, and the governor of Oyo state Seyi Makinde, is now the vice-chairman.

“Members expressed satisfaction with the success of the just-concluded induction for new and returning governors that took place between May 14 and 19, 2023.” 

Members of the forum also committed to sustaining collaboration among the states through enhanced peer review, learning at the sub-national level, and deepening the relationship with the federal government and other institutions, the communique noted. 

Recently, there has been controversy over consultancy fees amounting to $418 million from the Paris Club refund.

The NGF had in November 2022, said it resolved to sustain legal action against the disbursement of the $418 million Paris Club refund and promissory notes issued to consultants by the federal government and the Debt  Management Office (DMO).

The forum said the “resources belonging to states are not unjustly or illegally paid to a few in the guise of consultancies”.